The Hanoi Stock Exchange on Sept. 24 will inaugurate a new bond market for Government bond trading, in an effort to promote transparency and gradually develop it as an effective investing channel.

Opening from 9 to 11 am every working-day, the new market allows investors to trade with bonds directly or through an automatic system. Every trading activity would come through the member’s securities firm or commercial banks, with the payment coming to the account within a day.

The new market also includes a database system, which will be updated online with infobond, webbond and datavendor.

On Sept. 25, the bidding of 1 trillion VND of Government bonds issued by the Vietnam Development Bank is scheduled to take place at the newly-launched market.

It will be followed by the bidding of 500 billion VND worth of bonds five days later to fund the Thu Thiem urban area of the Ho Chi Minh City Investment Fund for Urban Development.

The bond market would provide a separate system from the securities market, which allows investors to implement outright trades and repos, said Tran Tuan Anh, a Hanoi Stock Exchange’s officer responsible for the bond market.

It would provide investors with less types of bonds, which would be divided on terms that would aim to supply bidders accessibility to bond information, he added.

“The opening of this market marks an increased interest in this type of transaction among investors. The establishment of the Vietnam Bond Market Association will be a big assistance for its development,” said Nguyen Van Dung, General Director of Hanoi Stock Exchange, the bond market’s organiser.

“A new development in the bond market is the participation of commercial banks, who have a considerable ability to stimulate growth,” said Dung.

The new market has already lured eight commercial banks, including one foreign bank and 16 securities firms to join.

“The commercial banks must have operations in Vietnam and have pledged to execute 50 billion VND (2.8 million USD) worth of trading in order to receive approval,” said Anh./.